MPs have questioned whether Whitehall is ready and skilled enough to commission smaller organisations on an equal basis with large organisations.

Conservative MP Nick de Bois raised the concern at a Public Administration Select Committee meeting on the Big Society this morning, saying he believed smaller organisations had a slim chance of winning statutory tenders.

Gareth Davies, head of the Office for Civil Society, said commissioners did tend to prefer larger players but argued that there is a greater understanding and awareness of the importance of diversity of providers, and creating a level playing field.

Referring to the Work Programme, Davies said that having two prime contractor voluntary organisations and 300 sub-contractor voluntary organisations was probably appropriate, but initiatives such as local integrated commissioning had not matured.

Also giving evidence at the meeting was Matthew Taylor, chief executive of RSA, who said looking for ways to involve sector organisations in the commissioning environment was difficult.

He said initiatives such as payment by results and social impact bonds were very hard to make work. “The appetite is there”, he said, “but the solution is far away.”